Enter the annualized rental income ($) and the net effects of amortization of lease incentives ($) into the Calculator. The calculator will evaluate the Net Passing Income.

## Net Passing Income Formula

NPI = ARI - NEA

Variables:

• NPI is the Net Passing Income ($) • ARI is the annualized rental income ($)
• NEA is the net effects of amortization of lease incentives ($) To calculate the Net Passing Income, subtract the net effects on amortization ## How to Calculate Net Passing Income? The following steps outline how to calculate the Net Passing Income. 1. First, determine the annualized rental income ($).
2. Next, determine the net effects of amortization of lease incentives ($). 3. Next, gather the formula from above = NPI = ARI – NEA. 4. Finally, calculate the Net Passing Income. 5. After inserting the variables and calculating the result, check your answer with the calculator above. Example Problem : Use the following variables as an example problem to test your knowledge. annualized rental income ($) = 15000

net effects of amortization of lease incentives (\$) = 1000